According to the Theory of X and Y, there are 2 categories of managers . McGregors Theory X and Theory Y posits two different sets of attitudes about the individual as an organizational member.36 Theory X and Y thinking gives rise to two different styles of leadership. Theory X, although outdated, is still used in larger firms, wherein a higher number of people are employed and deadlines are to be met. Theory Y is also known as contingency theory because it allows for flexibility in the work environment. C. employees are motivated mainly by the chance for advancement and recognition. Its like a teacher waved a magic wand and did the work for me. Here, managers see employees as lazy and not proactive towards their work. Theory Y managers favor a more collaborative approach, centering their leadership on trust, valuing creative problem solving, and managing by way of providing their employees with tools, opportunities, and visibility to do their jobs well. Many writers and researchers have explored how leaders can use power to address the needs of various situations. This theory is likely to be used when there are new employees, who need direction and accountability. Theory X managers and supervisors are sometimes called micro-managers. While money may not be the most effective way to self-fulfillment, it may be the only way available. [6] Managers are always looking for mistakes from employees, because they do not trust their work. What is the role of the leader and follower in the leadership process? The theory made some sense when. If a company wants to realize thebenefits described above, itneed to have the following: Theory Z is not the last word on management, however, as it does have its limitations. This suggests that a leader may use and employ power in a variety of ways. Yoko must also try to harness the motivational energy of her employees through things such as giving them more autonomy, responsibility, power, trust and feedback and involving them in the decision-making process. It follows the idea that there is no single way to organize a company or make decisions. As a result, they think that team members need to be prompted, rewarded or punished constantly to make sure that they complete their tasks. Interactive, participative style of managing. The manager would use promotions, incentives, the threat of firing or cutting off pay to motivate employees to put effort or work. McGregor and Maslow respected each other and used each others theories in their work. Theory X managers are likely to believe that: Answer 17) a. the average employee dislikes work and will seek to avoid it when possible. I would definitely recommend Study.com to my colleagues. Besides conducting the orchestra, he created a vision for the symphony. d. job satisfaction is primarily related to higher-order needs. Instead, McGregor feels that an approach located in the middle would be the most effective implementation of Theory X.[7]. Here, leaders act as facilitators, process consultants, network builders, conflict managers, inspirationalists, coaches, teachers/mentors, and cheerleaders.40 Such is the role of Ralph Stayer, founder, owner, and CEO of Johnsonville Foods. The idea that a managers attitude has an impact on employee motivation was originally proposed by Douglas McGregor,a management professor at the Massachusetts Institute of Technology during the 1950s and 1960s. Using this theory in these types of work conditions allows employees to specialize in particular work areas which in turn allows the company to mass-produce a higher quantity and quality of work. During the 1980s, American business and industry experienceda tsunami of demand for Japanese products and imports, particularly in the automotive industry. In a strict environment with little autonomy, workers were indeed unhappy and lacking ambition. This managerial style is more effective when used in a workforce that is not essentially motivated to perform. Different types of power elicit different forms of compliance: Leaders who rely on coercive power often alienate followers who resist their influence attempts. I feel like its a lifeline. Micro-managers believe that they must oversee every single task assigned to the employee, and they believe employees will try . D.job satisfaction is primarily related to higher order needs. Work is changing. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times. Are inherently lazy, lack. However, McGregor asserts that neither approach is appropriate, since the basic assumptionsof Theory X are incorrect. They need an interactive and safe environment with opportunities for growth, learning and creativity. People under Theory X believe that employees see their work as a burden and are lazy, so they tend to micromanage and control their performance and efforts. On this Wikipedia the language links are at the top of the page across from the article title. Accept work as a normal part of their day, and it's right next to recreation and rest. These credits give the individual a status that allows him to influence the direction that the group takes as it works to achieve its goals.27. Work can be as natural as play if the conditions are favorable. The employees could find their work fulfilling as well as challenging. Theory X vs Theory Y Managers| Douglas McGregor's Management Theory, Douglas McGregor's Motivation & Management Theories, Adair's Action-Centered Leadership Theory. I see Theory X and Theory Y as two natural divisions of people; groupings into those who dislike working and those who are inclined to working without persuasion. Theory X assumes that people dislike work and will avoid doing anything they don't have to do. As the old saying goes, 'be careful what you wish for, because you just might get it.' [3] Maslow's hierarchy of needs consists of physiological needs (lowest level), safety needs, love needs, esteem needs, and self-actualization (highest level). In general, Theory X style managers believe their employees are less intelligent, lazier, and work solely for a sustainable income. B. most workers know more about their job than the boss. According to McGregor, Theory X managementassumes the following: Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a strong second. Where a Theory X manager might threaten loss of employment in order to get employees to work on a Saturday, a Theory Y manager might appoint a temporary leadership title to anyone who chooses to show up to work on a Saturday. However, high-involvement organizations frequently encourage their formal and informal leaders to exercise the full set of management roles. Business Case Study: Apple's Management Style, Henri Fayol's Principles of Management | Summary & Explanation, Marginal Tax Rate Concept & Formula | How to Calculate Marginal Tax Rate, Decision Making Skills & Techniques | How to Improve Decision Making. McGregor makes the point that a command-and-control environment is not effective because it relies on lower needs for motivation, but in modern society those needs are mostly satisfied and thus are no longer motivating. [6] Theory X is a "we versus they" approach, meaning it is the management versus the employees. And the most lauded skills, especially in leadership, lie in the ability to connect seemingly disparate ideas and communicate those ideas clearly. Management believes employees' work is based on their own self-interest. So they must be controlled and coerced to get the job done. Work in organizations that are managed like this can . Once surgery begins, however, the surgeon is completely in charge. This book uses the What might be less immediately understandable are the differing effects of Theory X and Y on resulting behavior and productivity. Organizations that use self-managed work teams allow members of the team to select the individual who will serve as their team leader. The manager allows for collaborative decision-making and amicable relations within the organization or firm. It would be beneficial to use both theories in moderation to ensure productivity and discipline in an organization. A study of 3,600 managers from 14 countries reveals that most of them held assumptions about human nature that could best be classified as Theory X.37 Even though managers might publicly endorse the merits of participatory management, most of them doubted their workers capacities to exercise self-direction and self-control and to contribute creatively.38, Contemplating the central role of problem-solving in management and leadership, Jan P. Muczyk and Bernard C. Reimann of Cleveland State University offer an interesting perspective on four different leadership styles (see Exhibit 13.7) that revolve around decision-making and implementation processes.39. Sometimes these powers lead to follower performance and satisfaction, yet they also sometimes fail. People need more than monetary rewards or the threat of punishment to do their jobs. As a result, the only way that employees can attempt to meethigher-level needs at work is to seek more compensation, so, predictably, they focus on monetary rewards. They also dislike change and tend to resist it at all costs. Under these conditions, people will seek responsibility. A manager who believes in Theory Y could have assumptions that: Too much freedom could lead to no accountability and people could lose direction and focus. It helped me pass my exam and the test questions are very similar to the practice quizzes on Study.com. B employees are primarily motivated by opportunities for advancement and recognition. People will use work to satisfy their lower needs and seek to satisfy their higher needs during their leisure time. Theory Y results in an arrangement whereby individuals can achieve their own goals and happily accomplish the organizations goals at the same time. [11], For McGregor, Theory X and Theory Y are not opposite ends of the same continuum, but rather two different continua in themselves. Theory X managers are likely to believe that: most employees know more about their job than the boss. This allows the individual to receive either a direct reward or a reprimand, depending on the outcome's positive or negative nature. Back in the 1950s and 60s, MIT School of Management student Douglas McGregor published a theory on different types of workers. Theory X is a common management method that focuses on supervision and strict monitoring of employees. Research suggests that rationality is the most effective influence tactic in terms of its impact on follower commitment, motivation, performance, satisfaction, and group effectiveness.30. A variation on this theme is the concept of situational leadership, which advocates using different styles of management in different circumstances. Informal leaders, by contrast, are not assigned by the organization. It is also used in unskilled labor organizations or production firms. [7] McGregor believes both ends of the spectrum are too extreme for efficient real-world application. But . Equity Theory of Motivation | Components, Importance & Examples, Business 307: Leadership & Organizational Behavior, Hospitality 309: Food & Beverage Service & Operations, Business 209: Mentoring & Leadership Development in the Workplace, Business 313: Organizational Communication, Psychology 107: Life Span Developmental Psychology, SAT Subject Test US History: Practice and Study Guide, SAT Subject Test World History: Practice and Study Guide, Geography 101: Human & Cultural Geography, Intro to Excel: Essential Training & Tutorials, Create an account to start this course today. [4] This allows the employee to design, construct, and publish their work in a timely manner in co-ordinance to their workload and projects. Finally, the permissive democrat shares power with group members, soliciting involvement in both decision-making and execution. Theory X managers have a pessimistic view of their employees and assume that they are naturally unmotivated and hate work. Yoko is a Theory Y manager, and when I say Y here, think 'why not.' McGregor's Theory X and Theory Y is about judging the needs and character of your people. Also, participative decision-making may not always be feasible or successful due to the nature of the work or the willingness of the workers. McGregor (1960) proposed two models "Theory X and Theory Y", which he devised to describe two contrasting beliefs that managers hold about their paid workers. Evidence suggests that managers from different parts of the global community commonly hold the same view. Theory Y managers believe employees would be motivated to meet goals in the absence of organizational controls, given favorable conditions. To McGregor, a steady supply of motivation seemed more likely to occur underTheory Y management. Lucidchart makes it easy to share processes, information, and ideas with a team from a single centralized location. Theory X and Theory Y are two contrasting models of how your work force can be motivated. While there is a more personal and individualistic feel, this leaves room for error in terms of consistency and uniformity. PEOPLE WILL SEEK INCREASED RESPONSIBILITY AND CHALLENGE AND WILL WORK HARD UNDER THE RIGHT CONDITIONS True or false: A research called the "New Generation" of Chinese organizational leaders found that the new generation group scored the same on individualism as the current and older generation groups. As a result, they think that employees need to be prompted, rewarded or punished regularly to make sure that they perform their tasks. 147 lessons Discover each theory and the respective qualities of each, as well as how self-fulfilling prophecies come into play for managers. While these contrasting management styles might be easily recognizable in todays technology-driven world, they were novel thoughts at one point, developed through research and observation by a workplace thought leader. A Theory X management style may be well-suited for this type of structured, process-driven workplace. People under Theory Y believe. This theory supports threatening supervisory power. [1] McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. Theory X managers are likely to believe that: a. the average employee dislikes work and will seek to avoid it when possible. He was particularly interested in what motivates people to work hard, in particular on what belief systems motivate people to work hard. Theory X is a management style and way of thinking that suggests people are purely motivated by earning income to support their personal goals. 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